2 Stock-Split Growth Stocks Down 32% and 81% That Billionaires Are Buying
Despite macroeconomic headwinds that dragged the broader markets down into bear market territory in 2022 (and many individual stocks down even further), some investors still found reasons to be optimistic. For instance, shareholders in several popular companies saw their shares grow exponentially through stock splits this year. While stock splits have no actual impact on the intrinsic value of a business, they can give share prices a boost by making a stock affordable to a wider range of potential investors.
Another reason for optimism is that some great companies saw stock price drops that made those stocks bargains. That attracted long-term investors with available cash to begin buying up stock selectively. Select hedge fund managers got in on this act in the second quarter.
Chris Hohn of TCI Fund Management added to his firm's position in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), a company that completed a 20-for-1 stock split in July. And Jim Simons of Renaissance Technologies started a position for his firm in Shopify (NYSE: SHOP), a company that completed a 10-for-1 split in June. Both Hohn and Simons have a place on the Bloomberg Billionaires Index, so they know a thing or two about building wealth.
Source Fool.com
